The Kuwaiti bank declared its intension to join RippleNet, a SWIFT-replacement blockchain network that sees over 100 financial institutions including banks, payment providers, remittance operators and other financial establishments use the product for real-time clearing and settlement of international transactions.
KFH stated that with this move, KFH can supply instant and secure cross-border money transfers within few seconds, with end-to-end visibility over the journey of the payment. Details of the suggestion are presently scarce and it stays to be seen if the bank uses Ripple’s xCurrent, an enterprise blockchain software that allows settlements in fiat or xRapid, a product which uses Ripple’s token XRP for real-time liquidity for international proceedings.
As the bank claims it will demand the approval of the Central Bank of Kuwait (CBK) prior to the run of the Ripple service, KFH convinces that the clients will gain profits from faster payments in increased efficiency, security and transparency of the transaction at markedly lower costs than traditional solutions.
The defacto central bank of Saudi Arabia, the Saudi Arabian Monetary Authority (SAMA), has also cooperated with Ripple to pilot Ripple’s xCurrent among a number of regional banks. The SAMA is also the first central bank in the world to join RippleNet.